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Examples on the computation of the SME Rebates:

Example 1:
Firm “A”, a qualified SME, makes a total (employer and employee) CPF contribution of $100,000 in the first year, and $100,000 in the second year.

Firm “A” will receive the maximum total rebates of $1800:

  • First Year: 1st Tier ($800) + 2nd Tier ($400) = $1200
  • Second Year: 1st Tier ($400) + 2nd Tier ($200) = $600

Example 2:
Firm “B”, a qualified SME, makes a total (employer and employee) CPF contribution of $60,000 in the first year, and $60,000 in the second year.

Firm “B” will receive a total rebates of $1500:

  • First Year: 1st Tier ($800) + 2nd Tier ($200) = $1000
  • Second Year: 1st Tier ($400) + 2nd Tier ($100) = $500

Example 3:
Firm “C”, a qualified SME, makes a total (employer and employee) CPF contribution of $30,000 in the first year, and $80,000 in the second year.

Firm “C” will receive a total rebates of $1200:

  • First Year: 1st Tier ($600) + 2nd Tier ($0) = $600
  • Second Year: 1st Tier ($400) + 2nd Tier ($200) = $600

Example 4: (New Firm set up in First Year)
Firm “D”, a qualified SME, is set up only in March 2008, and makes a total (employer and employee) CPF contribution of $20,000 in the first year (i.e. up to June 2008) and $70,000 in the second year.

Firm “D” will receive total rebates of $950:

  • First Year: 1st Tier ($400) + 2nd Tier ($0) = $400
  • Second Year: 1st Tier ($400) + 2nd Tier ($150) = $550

Example 5: (New Firm set up in Second Year)
Firm “E”, a qualified SME, is set up only in October 2008, and makes a total (employer and employee) CPF contribution of $50,000 up till June 2009.

Firm “E” will receive total rebates of $450:

  • First Year: Not Applicable
  • Second Year: 1st Tier ($400) + 2nd Tier ($50) = $450